Homeowners pessimistic about property, finds Prudential

23 December 2004

Property owners are increasingly pessimistic about the prospects in the housing market, Prudential has found.

In its four-monthly Mood of the Nation Index Prudential found that just 30 per cent of homeowners believe the value of their property will increase over the next year, half the number that believed this in March.

Additionally the number of mortgage holders predicting declining property prices over the coming year has almost trebled from six per cent in March to 17 per cent now.

Director of research, Angus Maciver, said: "There is undoubtedly a growing nervousness about the housing market.

"Some people, wisely I think, are starting to realise that they can reduce risk by having a spread of investments rather than tying all their money up in their house."